Like in other European countries, Italy has no multiple listings system. Each agent has his or her own little cache of properties, so a lot of legwork is involved. It is estimated that only 10% of Italian agents speak English...and this is what we found on our own travels throughout Italy.
One important warning if you decide to investigate the market: There are some rogues out there—both Italian and expatriate—selling overpriced properties. Their main areas of operation are Tuscany and Umbria, and their target market seems to be poorly informed Americans. While prices in Italy are always negotiable, most buyers expect to negotiate downward...not upward.
Although all residential property is freehold and titles are registered, Italy is not the most straightforward country in which to purchase a home. The buying process is complex and generally takes place in three stages:
You’ve found the ideal property and decided to start initial negotiations. You make an offer, stating the price you are prepared to pay and the payment conditions. Before going any further, you should have a survey conducted. You will have to do this anyway if you’re applying for financing. The survey will be carried out by the geometra, who also undertakes local land registry searches and planning searches to ensure that the property conforms to local planning and building regulations.
During this initial stage, you may be asked by the agency for a small reservation deposit (prenotazione) of around 3%, but this is not always the case. At this point you will also need to appoint a notary. The notary is a public official who handles the process of buying and selling, and is responsible for ensuring that all the deeds are authentic and of incontestable value. The notary normally acts as a witness for both parties, drawing up the preliminary sales contract and, if applicable, dealing with the final mortgage deeds. Note that a notary is not a lawyer acting on your behalf.
Now it’s time to negotiate and draft a scrittura private (a private contract between you and the vendor), and sign and exchange the compromesso, or contract to buy. This is a legally binding document that commits the buyer to complete the purchase and to pay the balance of the agreed price on a specified future date. At the time of signing the compromesso, you will have to pay a deposit of between 10% and 30%. If you’re not dealing through an agency that holds your hand every step of the way, you will need the services of an Italian lawyer to draw up the initial contract, instruct the notary, and check over the final contract.
Contracts can be complex documents…especially if you don’t read Italian. For example, if the deposit is paid under the terms caparra confirmatoria, this means that the buyer must complete the deal or he/she automatically loses his/her deposit, and the seller could take legal action to force the purchase. (Even if the seller doesn’t take such action, losing a 30% deposit on a million-dollar Tuscan farmhouse is going to be a painful experience.) However, if the vendor pulls out, he is also going to feel pain, as he is legally bound to pay back double the deposit. Should a deposit be termed as caparra penitenziale, either or both parties can withdraw from the transaction without financial penalty.
Time to sign the rogito or final contract, which takes place in the presence of a public notary. He witnesses the transfer of title and collects all the taxes that are due on the transaction. Once the papers have been signed and the transaction is complete, the notary has 21 days to register the new title in your name. If you are buying the property with a mortgage, the notary will also register the mortgage deed.